Shiba Inu and its stark reality with $0.01/$0.1/$1 targets

Biraajmaan Tamuly
Shiba Inu Token
Source: Pixabay

Shiba Inu had a stellar 2021. For a brief insight into its performance a mere $2 investment on January 1st, would have incurred a $1.5 million profit at the moment. Many Investors’ life has changed with this particular asset but it is important to note that those ‘many’ investors are also few in number in comparison to their current crop of supporters.

However, there is a group of people that are still hoping for SHIB to reach $0.1 or $0.01 in a few years. An asset valued at 1 cent or 10 cents does not seem that daunting but the stark reality behind such an occurrence is vital for Shiba Inu investors to understand.

In this article, we will be unraveling the truth behind a $0.1 or $0.01 projection chance for the meme token.

Shiba Inu on-chain fundamentals update

Shiba Inu is currently up by 37% since a low of $0.00002855 on 20th December. While a significant uptrend might be in the cards for the meme token now, on-chain fundamentals suggested a stark contrast.

Source: Sanbase

As observed in the chart above, Shiba Inu’s active addresses haven’t captured the same level of activity since reaching its ATH level value towards the end of October. Similarly, transaction volume on the network daily has been low on average which indicates that the utility factor might not be as expansive as promoted.

Now major players such as AMC and Newegg have accepted Shiba Inu as payment options and there are 350 merchants more, but a majority of them are obscure markets. So unless Shiba Inu can maintain its legitimate widespread adoption, attaining new price heights in the market could be a tricky narrative.

$1, $0.1 or $0.01 Dream for Shiba; How real can it be?

We will be breaking this down into numbers in order for the consumers to understand the propensity of these price targets. Let us begin with the $1 evaluation.

According to Coingecko, the current circulating supply of Shiba Inu is roughly 550 trillion in the ecosystem. For 1 Shiba Inu token to be worth $1 dollar, the market cap of SHIBA will reach a whopping $550 trillion. For larget context, all the collective wealth together on Earth currently stands at around $400 trillion. This means that even if every fiat currency and asset is converted and stored as Shiba Inu, the global scale will still not meet the $1 dollar value. Hence it is practically impossible.

Coming to the $0.1 target, that would mean the market cap of Shiba Inu will be $55 trillion. In Bitcoin’s context, that is more than 55 times its current value i.e roughly $50,000. Hence, a very very steep target.

Lastly, $0.01 target. A market cap of $5.5 trillion. For Bitcoin to be worth around $5.5 trillion in market cap, each token has to be worth about $280k-$300k. A target BTC is yet to attain.

Therefore, Shiba Inu investors should be extremely mindful of their future price targets in mind. The aforementioned ranges are seldom to be reached anytime soon.